Hot Drinks in Israel

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Executive Summary

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Hot drinks continues to perform well

In 2017, the Israeli hot drinks market continued to record strong retail current value growth in line with the review period average. Coffee remained by far the largest category, having grown significantly over the past few years thanks to rising consumption both at home and outside the home.

Coffee witnesses an increase in competition

More players are entering the coffee category, both in the on-trade and off-trade. In fresh coffee in the on-trade, Tempo Beverages, which prior to 2015 was not present in hot drinks at all, purchased the Kimbo and Mauro brands.

Strauss Group remains the clear leader in hot drinks

Strauss Group remained the clear leader in hot drinks in 2017 in retail value terms, primarily thanks to the strength of its Elite coffee brand. The company offers Elite products in most coffee categories, while also heavily supporting the brand in terms of advertising in order to maintain strong consumer awareness of its products.

New product development focuses on pods

Several new launches were seen in 2017, with product development being largely focused on pods. Pod coffee machines have become more widely available and affordable and so more players are launching fresh ground coffee pods.

Slower growth expected over the forecast period

Hot drinks is expected to record slower growth in retail value terms at constant 2017 prices over the forecast period when compared to the review period as consumption stabilises. Several categories posted very strong growth in 2017, such as green tea and fresh ground coffee pods, but their growth rates are not expected to be repeated over the forecast period.

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